Foreign brokerage Nomura on Friday upped its target price on GE Vernova T&D India, as its revised its order inflows estimates, saying export gains add to thriving domestic tailwinds.
Nomura raised its total order inflow estimate over FY25-28F from Rs 34,700 crore to Rs 44,400 crore to factor in recurrence of large export orders. This, it said, following its meeting with the company management.
The brokerage also increased its Ebitda margin estimates by 90-180 basis points over FY25-28F to account for better revenue mix and cost control.
“Subsequently, we raise our EPS estimates by 7-8 per cent over FY25-28F. We retain our Buy rating with a higher targt of Rs 3,350 (previously Rs 2,970), valuing the stock at 60 times September 2027F EPS. The stock is currently trading at 59 times March 27 EPS,” Nomura said.
GE Vernova T&D India is the listed entity of GE Vernova’s electrification business in India. With a presence of over 100 years in India, it is a leading player in the power transmission and distribution sector. GE T&D India offers products ranging from medium voltage to ultra-high voltage (1200 kV) for power generation, transmission and distribution industry.
Following the Nomura’s target upgrade, shares of GE Vernova T&D India climbed 2.77 per cent to hit a high of Rs 3,066.45. The multibagger stock is up 146 per cent from its April 9 low of Rs 1,252.85 apiece.
Nomura said the outlook is robust for domestic base orders, as the management pegs the ex-HVDC (High Voltage Direct Current) market opportunity at Rs 2.7 lakh crore over 2025-30E.
The management sees recurring visibility on large orders – management estimates the HVDC market opportunity over 2025-30E at Rs 1.8 lakh crore with awarding for two HVDC orders to be completed in FY26E and 1-2 HVDC projects annually over the next 5-6 years.
In addition to the base export order inflow of Rs 1,000 crore, the management expects large order inflows from the parent company in the range of Rs 2,000-3,000 crore driven by an era of unprecedented demand for HVDC systems in the EU/ME and the cost arbitrage advantage. GVTD has approved resolution for related-party orders of Rs 2,950 crore in FY26, Nomura noted.